Why Vir Biotechnology Stock Is Sinking This Week
Shares of Vir Biotechnology (NASDAQ: VIR) were sinking 18.1% for the week as of the market close on Thursday. Vir was pulled down by the overall stock market sell-off earlier this week. However, its shares really took a dive after Goldman Sachs analyst Paul Choi downgraded the company from buy to neutral.
It's best to avoid making investment decisions based on analysts' downgrades (and upgrades, for that matter). However, you can sometimes learn things by understanding why a given analyst is bearish about a given stock.
In this case, though, Choi actually isn't bearish about Vir. Yes, he downgraded the biotech stock, and even lowered his 12-month price target. However, that price target still reflects a 14% upside from the stock's closing price at the end of last week and a 39% premium to the current share price.
Source Fool.com
